Issue credit memo and reconcile unapplied cash between two separate customer accounts

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Posted on by RoseG

I need assistance with the following scenario please: Customer A sends in two separate payments for two sales invoices ($8,000 & $10,000). The payments were posted & applied to the two invoices. Months later, Customer A decides that Customer B is responsible for paying a portion of these two invoices. These customers do business with each other, though they do not have a National account-child relationship in GP. Customer B sends in payments of $200 & $300 for the aforementioned invoices. These payments are now showing unapplied on Customer B’s account. Customer A has requested a credit memo for the total amount that Customer B paid ($500). What entries can be made to issue a credit memo to Customer A and reconcile the unapplied cash on Customer B’s account without affecting cash and keeping the RM & GL accounts in balance?

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Victoria Yudin 22,769 on at

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Rose, you can do the following:

1. Credit memo to Customer A for $500. Debit Suspense, Credit Accounts Receivable.

2. Debit memo to Customer B for $500. Debit Accounts Receivable, Credit Suspense.

3. Apply the 2 unapplied payments from customer B to the debit memo created in #2 above.

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RoseG 55 on at

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Thank you Victoria!

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